Analysts Lift Targets After Q3

Wall Street firms quickly adjusted their valuations for SpaceX (NASDAQ: SPCX) following the release of its third-quarter earnings for 2026 after the market closed on October 20.

The company reported $14.6 billion in revenue, a 161 percent increase year-over-year, which exceeded analyst expectations of approximately $12.7 billion. SpaceX also recorded a net profit of $4.4 billion, a reversal from a loss in the previous year, and posted an adjusted EBITDA of $8.8 billion.

Breaking down the performance, the Super Intelligence (AI) division produced roughly $7.6 billion and became the largest source of revenue, growing nearly 830 percent compared to last year. The Connectivity segment brought in $5.2 billion as strong subscriber additions pushed the Starlink consumer base to 13.6 million users.

During the earnings call, CEO Elon Musk and CFO Bret Johnsen offered guidance projecting Q1 2027 revenue between $33 billion and $37 billion. This figure is significantly higher than the approximately $22 billion analysts had anticipated. The company also plans fourth-quarter capital expenditures between $35 billion and $40 billion to support AI compute infrastructure projects at sites including Memphis and Southaven. Management targets 2.5 to 3 gigawatts of nameplate compute capacity by year-end and discussed pathways to 13 gigawatts or more by the end of 2027. Musk described relentless demand from hyperscalers and other customers, with compute pricing supporting payback periods of less than a year and potentially as short as six months.

In response to the financial results and future outlook, several financial institutions raised their price targets for the stock. JPMorgan increased its target to $500 from $240 with an Overweight rating, while Cantor Fitzgerald raised its target to $345 from $246. Barclays moved its target to $300 from $254, Morgan Stanley maintained a target of $300, and Wells Fargo raised its target to $274 from $214. Citi, UBS, TD Cowen, and Clear Street also issued higher targets.

Other developments discussed included Starship's recent orbital success, V3 satellite deployment, Starlink pricing and enterprise momentum, rapid Grok Bot adoption, spectrum expansion plans, and the formation of special committees to explore a possible combination with Tesla. Analysts cited the strong quarterly results, AI compute expansion, Starlink progress, and Starship milestones as reasons for the higher long-term growth expectations.

Shares in SpaceX closed at $147.79 on October 20 and rose about 8 percent in early premarket trading on October 21. The average analyst price target has moved higher, reflecting greater conviction in SpaceX's trajectory across launch, connectivity, and the Super Intelligence business.

The company is now positioned with increased spending focused on infrastructure, while elevated capital expenditure remains a point of focus for investors.